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WEALTH MANAGEMENT | Tony Chua, India

Published: 18 Nov 09

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Punjab National Bank finds no takers for PNB Gilts

Lack of buyer leaves PNB to acquire PNB Gilts as an option.

PNB for some time has been looking for a buyer for PNB Gilts but couldn't find one. The bank had to put off its plan to sell its stake in PNB Gilts, as it got poor response from bidders, according to a report in Financial Express.

Speaking to FE, KR Kamath, chairman and managing director of the bank, confirmed the development. "Yes, we are looking at the merger of the arm as one of the options," he said.

However, Kamath maintained that it was in a quite preliminary stage as it was yet to be approved by the boards of both companies- PNB Gilts and PNB. Kamath refused to divulge any further details on the plea that it will be too early to say anything further.

Again, as the matter is in the court and the court has to clear it first before beginning any process in that direction, added Kamath.

PNB holds 74 percent stake in PNB Gilts. The public share holding of PNB Gilts is at around 25.93 percent.

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